CFA Practice Question

There are 356 practice questions for this topic.

CFA Practice Question

Frank should disclose to clients about companies he recommends if ______

I. he has an underwriting relationship with the company.
II. he is acting as the company's market maker.
III. he has a 30% ownership of the company.
IV. he is a director in the company.
Correct Answer: I, II, III and IV

User Contributed Comments 6

User Comment
ggupta yes..anything which is expected to raise concern about the conflict on Interest..provide appropriate disclosures
JimM What about a mere 25% ownership in the company?
bundy Any ownerhip
oncewerepirates What about a mere 20% ownership in the company?
johntan1979 Even if you have 0.001 share ownership.

The CFA Standard VI(A) does not specify the percentage ownership, so it means ANY amount of ownership.
MapherRdz Yeah, any ownership must be disclosed not only if you have equal or more than the 30%
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